Women’s Day: Tax planning is an important aspect of financial management for everyone. Some tax benefits and exemptions have been given to women in the country; hence it becomes important to take advantage of these benefits by doing careful tax planning. Effective planning can help women optimize income, save money and meet their financial goals. You can see some tips related to tax planning here.
Standard Deduction: Women can claim standard deduction up to Rs 50,000 on their income.
Section 80C: Women can avail tax exemption under Section 80C of IT by investing up to Rs 1.5 lakh in tax-saving instruments like Public Provident Fund (PPF), National Savings Certificate (NSC), and Employee Provident Fund (EPF).
Section 80D: Under Section 80D of Income Tax, a person gets the right to avail tax exemption on health insurance of himself or his family members – husband, children, parents. With its help, women can get tax exemption on health insurance premium ranging from Rs 25 thousand to Rs 1 lakh every year.
Section 80G: Under Section 80G of Income Tax, it gives the right to any person or organization to get tax exemption on the help given in the form of donation or donations. Women can avail tax exemption on donations made to social service or public welfare organizations. With the help of this rule, tax exemption can also be availed on donations and donations given to relief funds created by the government.
To save maximum tax and money, you can consider all the investment options mentioned here.
Sukanya Samriddhi Yojana (SSY): If your daughter's age is 10 years or less, then you can choose to invest in Sukanya Samriddhi Yojana. By doing this, you can invest annually in your daughter's name till she turns 21 years of age. This is a great way to save for your children's future as this scheme offers the benefit of higher interest and also tax exemption under Section 80C.
Equity-Linked Savings Scheme (ELSS): You can also invest in ELSS mutual funds to avail tax benefits under Section 80C.
Public Provident Fund (PPF): PPF provides tax-free interest and long-term wealth creation.
National Pension System (NPS): NPS offers additional tax deduction of up to Rs 50,000 under section 80CCD(1B).
Tax-saving through home loan
Women taking home loans can avail additional tax benefits.
Under Section 24 of Income Tax, taxpayers get the opportunity to claim deductions on interest paid on home loan.
Under Section 80EEA of Income Tax, any person buying a house for the first time in the country can claim a tax deduction of up to Rs 1.5 lakh. Please note that this is in addition to the standard deduction.
Tax-free bonds are a special type of investment option because the returns on them are outside the scope of income tax. These bonds are issued by the government and they provide regular income with low risk.
Evaluate retirement planning options
Women should give priority to retirement planning to ensure financial security for life after the age of 60. Options like National Pension System (NPS) and Employee Provident Fund (EPF) provide attractive tax benefits and this scheme also They also prove helpful in arranging retirement corpus i.e. fund.
Tax-saving planning is very important for women in the country to optimize their income, save money and meet financial targets. By taking advantage of tax exemptions and tax deductions and exploring various investment options in the tax section, women can do effective tax planning while making money. One should always stay updated with the latest tax rules and prefer consulting an expert financial advisor rather than personal advice. By adopting such strategies, women can move towards an economically secure future.
